UPDATE 1-Canadian factory prices fall in June, hit by strong dollar

OTTAWA, July 30 (Reuters) - Industrial product prices in
Canada slipped by 0.1 percent in June from May as the strong
Canadian dollar cut the prices for motorized and recreational
vehicles, Statistics Canada said on Wednesday.

The drop - the third monthly decline in a row - matched
analysts' expectations. Prices rose by 3.0 percent from June
2013, down from the 3.4 percent year-on-year advance noted in
May.

Prices for motorized and recreational vehicles fell by 0.3
percent, largely due to the 0.6 percent increase in the value of
the Canadian dollar against the U.S. dollar in June.

There is a significant trade in vehicles between Canada and
the United States. Some exporters price their goods in U.S.
dollars, which means they get fewer Canadian dollars as the
domestic currency strengthens.

Raw material prices rose by 1.1 percent from May, largely as
a result of higher prices for crude energy products. The
increase was greater than the 0.4 percent month-on-month growth
forecast by analysts.

Prices rose by 9.2 percent in the year to June after a 7.7
percent year-on-year jump in May, thanks to a 15.6 percent rise
in the prices of crude energy products.